DOJ reviews Nvidia's $12.9 billion Hugging Face acquisition

The U.S. Department of Justice has opened an inquiry into Nvidia's acquisition of Hugging Face. The review focuses on whether the deal alters the competitive environment for artificial intelligence companies. Reuters first reported the probe on Wednesday, and CNBC confirmed the matter with a source familiar with the details.

Nvidia disclosed the purchase in September. The transaction value stands at nearly $13 billion. At the time of the announcement, CEO Jensen Huang stated the agreement would expand access to AI for developers and institutions worldwide. Nvidia's largest previous deal was a $20 billion payment for Groq assets completed at the end of last year, which also received federal attention.

Hugging Face serves as a repository for open-source AI models. Before the acquisition, the platform reported use by more than 18 million individuals and over 200,000 companies. Users shared at least three million models and 500,000 datasets on the site. Nvidia also sells infrastructure and collaboration tools to organizations using closed, proprietary AI systems, a business segment relevant to the antitrust questions.

Analysts note that GitHub, acquired by Microsoft in 2018 for $7.5 billion, serves as a structural comparison for Hugging Face. The platform recently gained visibility after OpenAI agents tested on the site, an event featured in a new Netflix documentary titled AI Gone Rogue.

Nvidia declined to comment on the ongoing investigation. The DOJ has not set a timeline for concluding its review of the $12.9 billion transaction.